Income Tax Objective

type Questions
Objective Questions in Income Tax
MULTIPLE CHOICE QUESTIONS
(Finance Act !!"#
$% Su&c'a&(e o) $! *e& cent is *a+ab,e
b+ an in-ivi-ua, .'e&e t'e tota,
income excee-s/
a# 0s%123!2!!! b# 0s%"23!2!!! c#
0s%$!2!!2!!! -# None o) t'e t'&ee
Ans c
% A--itiona, su&c'a&(e (e-ucation
cess# o) 45 *e& cent is *a+ab,e on
a# Income tax b# Income tax *,us
su&c'a&(e c# Su&c'a&(e
Ans b
4% Fami,+ *ension &eceive- b+ a
.i-o. o) a membe& o) t'e a&me-
)o&ces .'e&e t'e -eat' o) t'e
membe& 'as occu&&e- in t'e cou&se o)
t'e o*e&ationa, -uties2 is
a# Exem*t u* to 0s%42!!2!!! b#
Exem*t u* to 0s% 423!2!!!
c# Tota,,+ exem*t un-e& section
$!($6# -# Tota,,+ c'a&(eab,e to tax
Ans c
7% In &es*ect o) s'a&es 'e,- as
investment2 .'i,e com*utin( t'e
ca*ita, (ains2 secu&ities t&ansaction
tax *ai- in &es*ect o) sa,e o) ,iste-
s'a&es so,- in a &eco(ni8e- stoc9
exc'an(e2
a# Is -e-uctib,e u* to 0s%$2!!2!!! b#
Is -e-uctib,e u* to 0s%2!!2!!!
c# Is -e-uctib,e i) C%:%;s is < 32!!2!!!
-# Is not -e-uctib,e at a,,
Ans -
3% :i)t o) 0s 32!!2!!! &eceive- on $!
=u,+2 !!" t'&ou(' account *a+ee
c'e>ue )&om a non?&e,ative
&e(u,a&,+ assesse- to income?tax2 is
a# A ca*ita, &ecei*t not c'a&(eab,e to
tax b# C'a&(eab,e as ot'e& sou&ces
c# C'a&(eab,e to tax as business
income
-# Exem*t u* to 0s%3!2!!! an-
ba,ance c'a&(eab,e to tax as income
)&om ot'e& sou&ce
Ans b
@% T'e &ate o) tax t'at is ,eivab,e on
STC: a&isin( )&om t&ans)e& o) E>uit+
s'a&es o) a Com*an+ o&
units o) an E>uit+ o&iente- )un- is
a# $!5 b# $35 c# !5
Ans b
1% Fo& an em*,o+ee in &ecei*t o)
'oste, ex*en-itu&e a,,o.ance )o& 'is
t'&ee c'i,-&en2 t'e maximum
annua, a,,o.ance exem*t un-e&
section $!($7# is
a# 0s%$!2 "!! b# 0s%12!! c# 0s%62@!!
-# 0s%42@!!
Ans b
"% Fo& an in-ust&ia, un-e&ta9in(
)u,)i,,in( t'e con-itions2 a--itiona,
-e*&eciation in &es*ect o) a
mac'ine&+ costin( 0s%$! ,a9'
ac>ui&e- an- insta,,e- on Octobe& 42
!!3 is
a# 0s%132!!! b# 0s%$23!2!!! c#
0s%$2!!2!!! -# None o) t'e above
Ans c
6% Assessee is a,.a+s a *e&son but a
*e&son ma+ o& ma+ not be an
assessee%
a# T&ue b# Fa,se
Ans a
$!% A *e&son ma+ not 'ave assessab,e
income but ma+ sti,, be assessee%
a# T&ue b# Fa,se
Ans a
$$% In some cases assessment +ea& an-
*&evious +ea& can be same )inancia,
+ea&%
a# T&ue b# Fa,se
Ans a
$% A%O%P s'ou,- consist o) /
a# In-ivi-ua, on,+ b# Pe&sons ot'e&
t'an in-ivi-ua, on,+ c# Aot' t'e above
Ans c
$4% Ao-+ o) in-ivi-ua, s'ou,- consist
o) /
a# In-ivi-ua, on,+ b# Pe&sons ot'e&
t'an in-ivi-ua, on,+ c# Aot' t'e above
Ans a
$7% A ne. business .as set u* on$3?
$$?!!" an- it commence- its
business )&om $?$?!!"%T'e
)i&st *&evious +ea& in t'is case s'a,,
be/
a# $3?$$?!!" to 4$?4?!!6 b# $?$?
!!" to 4$?4?!!6 c# !!"?!!6
Ans a
$3% A *e&son ,eaves In-ia
*e&manent,+ on $3?$$?!!"%T'e
assessment +ea& )o& income ea&ne- ti,,
$3?$$?!!" in t'is case s'a,, be/
a# !!1?!" b# !!"?!6 c# !!6?$!
Ans b
$@% Su&c'a&(e in case o) an in-ivi-ua,
o& HUF )o& assessment +ea& !!6?$!
is *a+ab,e at t'e &ate o) /
a# $5 o) t'e income?tax *a+ab,e
*&ovi-e- t'e tota, income excee-
0s%@!2!!!%
b# $!5 o) t'e income?tax *a+ab,e
*&ovi-e- t'e tota, income excee-s
0s%$!2!!2!!!
c# 35 o) t'e income?tax *a+ab,e i) t'e
tota, income excee-s 0s%"23!2!!!
Ans b
$1% Su&c'a&(e in case o) a )i&m )o&
assessment +ea& !!6?$! is *a+ab,e at
t'e &ate/
a# %35 o) income?tax *a+ab,e b# 35
o) income?tax *a+ab,e c# $!5 o)
income?tax *a+ab,e
Ans c
$"% T'e maximum amount on .'ic'
income?tax is not c'a&(eab,e in case
o) )i&m is/
a# 0s%$2!!2!!! b# 0s% 6!2!!! c# Ni,
Ans c
$6% T'e maximum amount on .'ic'
income?tax is not c'a&(eab,e in case a
co?o*e&ative societ+ is/
a# 0s%3!2!!! b# 0s%4!2!!! c# Ni,
Ans c
!% A ,oca, aut'o&it+ is taxab,e at ),at
&ate o) income?tax%
a# T&ue b# Fa,se
Ans a
$% A co?o*e&ative societ+ is taxab,e
at ),at &ate o) 4!5 on TI%
a# T&ue b# Fa,se
Ans b
% E-ucation cess is ,eviab,e B/
a# 45 b# 35 c# %35
Ans a
4% E-ucation cess is ,eviab,e in case
o)/
a# An in-ivi-ua, an- HUF b# A
com*an+ assessee on,+ c# A,, assesses
Ans c
7% In case o) an in-ivi-ua, an- HUF
e-ucation cess is ,eviab,e on,+ .'en
t'e tota, income o) suc'
assessee
a# Excee-s 0s%$!2!!2!!! b# No
income ,imit
Ans b
3% T'e TI o) t'e assessee 'as been
com*ute- as 0s%2342767%6!% Fo&
&oun-in( o)) 2t'e TI .i,, be
ta9en as/
a# 0s%23423!! b# 0s%234276! c#
0s%2342763
Ans a
@% Income tax is &oun-e- o)) to/
a# Nea&est ten &u*ees b# Nea&est one
&u*ee c# No &oun-in( o)) o) tax is
-one
Ans a
1% A;s TI )o& t'e A%C&%!!6?$! is
0s%23!2!!!%His tax ,iabi,it+ s'a,, be
a# $!2!!! b# $!24!! c# $$244!
Ans b
"% 0esi-entia, status to be
-ete&mine- )o& /
a# P&evious +ea& b# Assessment +ea&
c# Accountin( +ea&
Ans a
6% Incomes .'ic' acc&ue o& a&ise
outsi-e In-ia but a&e &eceive- -i&ect,+
into In-ia a&e taxab,e in case o)
a# 0esi-ent on,+ b# Aot' o&-ina&i,+
&esi-ent an- NO0 c# Non?&esi-ent -#
A,, t'e assesses
Ans -
4!% Income -eeme- to acc&ue o& a&ise
in In-ia is taxab,e in case o) /
a# 0esi-ent on,+ b# Aot' o&-ina&i,+
&esi-ent an- NO0 c# Non?&esi-ent -#
A,, t'e assesses
Ans -
4$% Income .'ic' acc&ue outsi-e
In-ia )&om a business cont&o,,e- )&om
In-ia is taxab,e in case o)/
a# 0esi-ent on,+ b# Not o&-ina&i,+
&esi-ent on,+
c# Aot' o&-ina&i,+ &esi-ent an- NO0
-# Non?&esi-ent
Ans c
4% Income .'ic' acc&ue o& a&ise
outsi-e In-ia an- a,so &eceive-
outsi-e In-ia taxab,e in case o)/
a# &esi-ent on,+ b# not o&-ina&i,+
&esi-ent
c# bot' o&-ina&i,+ &esi-ent an- NO0
-# none o) t'e above
Ans a
44% TI o) a *e&son is -ete&mine- on
t'e basis o) 'is/
a# &esi-entia, status in In-ia b#
citi8ens'i* in In-ia c# none -# bot' o)
t'e above
Ans a
47% Once a *e&son is a &esi-ent in a
P%C&% 'e s'a,, be -eeme- to be
&esi-ent )o& subse>uent P% C&%
a# T&ue b# Fa,se
Ans b
43% Once a *e&son is &esi-ent )o& a
sou&ce o) income in a *a&ticu,a& P% C
&% 'e s'a,, be -eeme- to be
&esi-ent )o& a,, ot'e& sou&ces o)
income in t'e same P% C& /
a# T&ue b# Fa,se
Ans b
4@% 0 Lt-%2 is an In-ian com*an+
.'ose enti&e cont&o, an- mana(ement
o) its a))ai&s is situate-
outsi-e In-ia% 0 Lt-%2 s'a,, be /
a# 0esi-ent in In-ia b# Non?&esi-ent
in In-ia c# Not o&-ina&i,+ &esi-ent in
In-ia
Ans a
41% 0 Lt-%2 is &e(iste&e- in U%D% T'e
cont&o, an- mana(ement o) its a))ai&s
is situate- in In-ia %0 Lt-
s'a,, be /
a# 0esi-ent in In-ia b# Non?&esi-ent
c# Not o&-ina&i,+ &esi-ent in In-ia
Ans b
4"% 02 a )o&ei(n nationa, visite- In-ia
-u&in( *&evious +ea& !!"?!6 )o& $"!
-a+s% Ea&,ie& to t'is 'e
neve& visite- In-ia% 0 in t'is case
s'a,, be/
a# 0esi-ent in In-ia b# Non?&esi-ent
c# Not o&-ina&i,+ &esi-ent in In-ia
Ans b
46% An In-ian com*an+ is a,.a+s
&esi-ent in In-ia
a# T&ue b# Fa,se
Ans a
7!% Eivi-en- *ai- b+ an In-ian
com*an+ is/
a# Taxab,e in In-ia in t'e 'an-s o) t'e
&eci*ient b# Exem*t in t'e 'an-s o)
&eci*ient
c# Taxab,e in t'e 'an-s o) t'e
com*an+ an- exem*t in t'e 'an-s o)
t'e &eci*ient
Ans c
7$% A(&icu,tu&a, income is exem*t
*&ovi-e- t'e/
a# Lan- is situate- in In-ia b# Lan- is
situate- in an+ &u&a, a&ea In-ia
c# Lan- is situate- .'et'e& in In-ia o&
outsi-e In-ia%
Ans a
7% I) t'e assessee is en(a(e- in t'e
business o) (&o.in( an-
manu)actu&in( tea in In-ia 2t'e
a(&icu,tu&a, income in t'at case s'a,,
be/
a# 7!5 o) t'e income )&om suc'
business b# @!5 o) t'e income )&om
suc' business
c# Ma&9et va,ue o) t'e a(&icu,tu&a,
*&o-uce minus ex*enses on
cu,tivation o) suc' *&o-uce
Ans b
74% A(&icu,tu&a, income is /
a# Fu,,+ exem*t b# Pa&tia,,+ exem*t c#
Fu,,+ taxab,e
Ans a
77% T'e *a&tia, inte(&ation o)
a(&icu,tu&a, income2 is -one to
com*ute tax on/
a# A(&icu,tu&a, income b# non
a(&icu,tu&a, income
c# Aot' a(&icu,tu&a, an- non
a(&icu,tu&a, income
Ans b
73% T'e&e .i,, be no *a&tia,
inte(&ation o) a(&icu,tu&a, income
.it' non a(&icu,tu&a, income2 i) t'e
non a(&icu,tu&a, income -oes not
excee-/
a# 0s%$23!2!!! b# 0s% $2!!2!!! c#
0s%$2$!2!!!
Ans a
7@% T'e&e .i,, be no *a&tia,
inte(&ation2 i) t'e a(&icu,tu&a, income
-oes not excee-/
a# 0s%7!2!!! b# 0s%3!2!!! c# 0s%32!!!
Ans c
71% A ,oca, aut'o&it+ 'as ea&ne-
income )&om t'e su**,+ o)
commo-ities outsi-e its o.n
ju&is-ictiona, a&ea% It is /
a# Exem*t b# Taxab,e
Ans b
7"% 02 a c'a&te&e- accountant is
em*,o+e- .it' 0 Lt-%2 as an inte&na,
au-ito& an- &e>uests t'e
em*,o+e& to ca,, t'e &emune&ation as
inte&na, au-it )ee% 0 s'a,, be
c'a&(eab,e to tax )o& suc' )ee
un-e& t'e 'ea-%
a# Income )&om sa,a&ies b# P&o)it an-
(ains )&om Ausiness an- P&o)ession
c# Income )&om ot'e& sou&ces%
Ans a
76% 02 .'o is entit,e- to a sa,a&+ o)
0s%$!2!!! *%m% too9 an a-vance o)
0s%!2!!! a(ainst t'e sa,a&+
in t'e mont' o) Ma&c' !!6%T'e (&oss
sa,a&+ o) 0 )o& assessment +ea& !!6?
$! s'a,, be/
a# 0s%$27!2!!! b# 0s%$2!2!!! c# None
o) t'ese t.o
Ans a
3!% A is entit,e- to c'i,-&en e-ucation
a,,o.ance B 0s% "! *%m% *e& c'i,- )o&
4 c'i,-&en amountin(
0s% 7! *%m% It .i,, be exem*t to t'e
extent o) /
a# 0s%!! *%m% b# 0s%$@! *%m% c# 0s%
7! *%m%
Ans a
3$% 0 (i)te- 'is 'ouse *&o*e&t+ to 'is
.i)e in !!!% 0 'as ,et out t'e 'ouse
*&o*e&t+ B 0s%32!!! *%m%
T'e income )&om suc' 'ouse *&o*e&t+
.i,, be taxab,e in t'e 'an-s o) /
a# M&s% 0
b# 0% Ho.eve& 2 income .i,, be
com*ute- )i&st as M&s% 0;s income
an- t'e&ea)te& c,ubbe- in t'e
income o) 0
c# 0 as 'e .i,, be t&eate- as -eeme-
o.ne& F ,iab,e to tax
Ans c
3% 0 t&ans)e&&e- 'is 'ouse *&o*e&t+ to
'is .i)e un-e& an a(&eement to ,ive
a*a&t% Income )&om suc'
'ouse *&o*e&t+ s'a,, be taxab,e in t'e
'an-s o) /
a# 0 as -eeme- o.ne&
b# 0% Ho.eve&2 it .i,, be )i&st
com*ute- as M&s% 0 income F
T'e&ea)te& c,ubbe- in t'e 'an-s o) 0
c# M&s% 0
Ans c
34% 0 (i)te- 'is 'ouse *&o*e&t+ to 'is
ma&&ie- mino& -au('te&% T'e income
)&om suc' 'ouse *&o*e&t+
s'a,, be taxab,e in t'e 'an-s o) /
a# 0 as -eeme- o.ne&%
b# 0% Ho.eve&2 it .i,, be )i&st
com*ute- as mino& -au('te&s income
F c,ubbe- in t'e income o) 0%
c# Income o) ma&&ie- mino& -au('te&%
Ans c
37% A 'as t.o 'ouse *&o*e&ties% Aot'
a&e se,)?occu*ie-% T'e annua, va,ue o)
a# Aot' 'ouse s'a,, be ni, b# One
'ouse s'a,, be ni, c# No 'ouse s'a,, be
ni,
Ans b
33% An assessee 'as bo&&o.e- mone+
)o& *u&c'ase o) a 'ouse F Inte&est is
*a+ab,e outsi-e In-ia%
Suc' inte&est s'a,,/
a# Ae a,,o.e- as -e-uction b# Not to
be a,,o.e- on -e-uction
c# Ae a,,o.e- as -e-uction i) t'e tax
is -e-ucte- at sou&ce
Ans c
3@% Sa,a&+2 bonus2 commission o&
&emune&ation -ue to o& &eceive- b+ a
.o&9in( *a&tne& )&om t'e
)i&m is taxab,e un-e& t'e 'ea-%
a# Income )&om sa,a&ies b# Ot'e&
sou&ces c# P:AP
Ans c
31% Pe&>uisite &eceive- b+ t'e
assessee -u&in( t'e cou&se o) ca&&+in(
on 'is business o& *&o)ession is
taxab,e un-e& t'e 'ea-%
a# Sa,a&+ b# Ot'e& sou&ces c# P:AP
Ans c
3"% Inte&est on ca*ita, o& ,oan &eceive-
b+ a *a&tne& )&om a )i&m is/
a# Exem*t UGS $!(A# b# Taxab,e
UGH business an- *&o)ession
c# Taxab,e UGH income )&om ot'e&
sou&ces
Ans b
36% Un-e& t'e 'ea- Ausiness o&
P&o)ession2 t'e met'o- o) accountin(
.'ic' an assessee can )o,,o.
s'a,, be /
a# Me&canti,e s+stem on,+ b# Cas'
s+stem on,+ c# Me&canti,e o& cas'
s+stem on,+ -#
H+b&i- s+stem
Ans c
@!% An asset .'ic' .as ac>ui&e- )o&
0s% 32 !!2 !!! .as ea&,ie& use- )o&
scienti)ic &esea&c'% A)te& t'e
&esea&c' .as com*,ete-2 t'e
mac'ine&+ .as b&ou('t into t'e
business o) t'e assessee% T'e
actua, cost o) t'e asset )o& t'e *u&*ose
o) inc,usion in t'e b,oc9 o) asset s'a,,
be /
a# 0s%32!!2!!! b# Ni,
c# Ma&9et va,ue o) t'e asset on t'e
-ate it .as b&ou('t into business
Ans b
@$% A ca& is im*o&te- a)te& $? 7? !!3
b+ 0 Lt-% )&om Lon-on to be use- b+
its em*,o+ee% 0 Lt-% s'a,,
be a,,o.e- -e*&eciation on suc' ca&
at/
a# $35 b# 7!5 c# Ni,
Ans c
@% Unabso&be- -e*&eciation .'ic'
cou,- not be set o)) in t'e same
assessment +ea&2 can be ca&&ie-
)o&.a&- )o&/
a# " Cea&s b# In-e)inite,+ c# 7Cea&s
Ans b
@4% Ce&tain &evenue an- ca*ita,
ex*en-itu&e on scienti)ic &esea&c' a&e
a,,o.e- as -e-uction in t'e
*&evious +ea& o) commencement o)
business even i) t'ese a&e incu&&e-/
a# Five +ea&s imme-iate,+ be)o&e t'e
commencement o) business
b# 4 +ea&s imme-iate,+ be)o&e t'e
commencement o) t'e business
c# An+ time *&io& to t'e
commencement o) t'e business%
Ans b
@7% I) an+ amount is -onate )o&
&esea&c'2 suc' &esea&c' s'ou,- be in
natu&e o)/
a# Scienti)ic &esea&c' on,+ b# Socia, o&
statistica, &esea&c' on,+
c# Scienti)ic o& socia, o& statistica,
&esea&c'
Ans c
@3% P&e,imina&+ ex*enses incu&&e- a&e
a,,o.e- -e-uction in/
a# $! e>ua, annua, insta,,ments b# 3
e>ua, annua, insta,,ments c# )u,,
Ans b
@@% In case t'e assessee )o,,o.s
me&canti,e s+stem o) accountin(2
bonus o& commission to t'e
em*,o+ee a&e a,,o.e- as -e-uction
on/
a# Eue basis b# Pa+ment basis c# Eue
basis but subject to section 74A
Ans c
@1% Inte&est on mone+ bo&&o.e- )o&
t'e *u&*ose o) ac>ui&in( a ca*ita,
asset *e&tainin( to t'e *e&io-
a)te& t'e asset is *ut to use is to be/
a# Ca*ita,i8e- b# T&eate- as &evenue
ex*en-itu&e
Ans b
@"% Ex*en-itu&e incu&&e- on *u&c'ase
o) anima,s to be use- b+ t'e assessee
)o& t'e *u&*ose o)
ca&&+in( on 'is businessF *&o)ession
is subject to
a# Ee*&eciation
b# Ee-uction in t'e *&evious +ea& in
.'ic' anima, -ies o& become
*e&manent,+ use,ess
c# Ni, -e-uction
Ans b
@6% Ex*en-itu&e incu&&e- on )ami,+
*,annin( amon(st t'e em*,o+ees is
a,,o.e- to
a# An+ assessee b# A com*an+
assessee c# An assessee .'ic' is a
com*an+ o& coo*e&ative societ+
Ans b
1!% Inte&est on ca*ita, o) o& ,oan )&om
*a&tne& o) a )i&m is a,,o.e- as
-e-uction to t'e )i&m to t'e extent o)/
a# $"5 *%a% b# $5 *%a% even i) it is
not mentione- in *a&tne&s'i* -ee-
c# $5 *%a% o& at t'e &ate mentione- in
*a&tne&s'i* -ee- .'ic'eve& is ,ess%
Ans c
1$% Ee-uction un-e& section 7!(b#
s'a,, be a,,o.e- on account o)
sa,a&+ G&emune&ation *ai- to /
a# An+ *a&tne& b# Majo& *a&tne& on,+
c# Ho&9in( *a&tne& on,+
Ans c
1% 0emune&ation *ai- to .o&9in(
*a&tne& s'a,, be a,,o.e- as -e-uction
to a )i&m/
a# In )u,, b# Subject to ,imits s*eci)ie-
in section 7!(b# c# None o) t'ese t.o
Ans b
14% A )i&m business income is ni,
Gne(ative% It s'a,, sti,, be a,,o.e- as
-e-uction on account o)
&emune&ation to .o&9in( *a&tne& to
t'e maximum extent o)/
a# Actua, &emune&ation *ai- as
s*eci)ie- in *a&tne&s'i* -ee- b#
0s%3!2!!! c# Ni,
Ans b
17% Fo& *e&son ca&&+in( on *&o)ession2
tax au-it is com*u,so&+2 i) t'e (&oss
&ecei*ts o) t'e *&evious
+ea& excee-s/
a# 0s%3! ,a9's b# 0s%7! ,a9's c# 0s%$!
,a9's
Ans c
13% Tax au-it is com*u,so&+ in case a
*e&son is ca&&+in( on business .'ose
(&oss
tu&nove&Gsa,esG&ecei*ts2 as t'e case
ma+ be2 excee-s/
a# 0s% $! ,a9's b# 0s% 7! ,a9's c# $
c&o&e
Ans b
1@% In case an assessee is en(a(e- in
t'e business o) civi, const&uction2
*&esum*tive income sc'eme
is a**,icab,e i) t'e (&oss &ecei*ts *ai-
o& *a+ab,e to 'im in t'e *&evious +ea&
-oes not excee-/
a# 0s%$! ,a9's b# 0s% 7! ,a9's c# 0s%
3! ,a9's
Ans b
11% In t'e a)o&esai- case 2t'e income
s'a,, be *&esume- to be /
a# 35 o) (&oss &ecei*ts b# "5 o) (&oss
&ecei*ts c# $!5 o) (&oss &ecei*ts
Ans b
1"% In case an assessee is en(a(e- in
t'e business o) *,+in( 'i&in( o&
,easin( (oo-s ca&&ia(e2
*&esum*tion income sc'eme un-e&
section 77AE is a**,icab,e i) t'e
assessee is t'e o.ne& o)
maximum o) /
a# " (oo-s ca&&ia(es b# $! (oo-s
ca&&ia(es c# $ (oo-s ca&&ia(es
Ans b
16% In case an assessee is en(a(e- in
t'e business o) &etai, t&a-e2
*&esum*tive income sc'eme is
a**,icab,e i) t'e tota, tu&nove& o) suc'
&etai, t&a-e o) (oo-s -oes not excee-/
a# 0s%$! ,a9's b# 0s%4! ,a9's c# 0s%7!
,a9's -# 0s%3! ,a9's
Ans c
"!% In t'e above case t'e income to be
*&esume- un-e& section 77AF s'a,, be
/
a# "5 o) tota, tu&nove& b# 35 o) tota,
tu&nove& c# $!5 o) tota, tu&nove&
Ans b
"$% I) t'e assessee o*ts )o& section
77AE o& 77AF o& 77AE2t'en t'e
assessee s'a,,/
a# Not be entit,e- to an+ -e-uction
un-e& sections 4! to 41
b# Ae entit,e- to -e-uction un-e&
sections 4! to 41
c# Not be entit,e- to -e-uction un-e&
sections 4! to 41exce*t )o& inte&est on
ca*ita, o& ,oan )&om
*a&tne& an- &emune&ation to a .o&9in(
*a&tne& subject to con-itions ,ai-
-o.n un-e& section 7!(b#
Ans c
"% T'e *e&io- o) 'o,-in( o) s'a&es
ac>ui&e- in exc'an(e o) conve&tib,e
-ebentu&es s'a,, be &ec9one-
)&om/
a# T'e -ate o) 'o,-in( o) -ebentu&es
b# T'e -ate o) .'en t'e -ebentu&es
.e&e conve&te- into s'a&es
c# None o) t'ese t.o
Ans b
"4% Secu&ities t&ansaction tax *ai- b+
t'e se,,e& o) s'a&es an- units s'a,,
a# Ae a,,o.e- as -e-uction as
ex*enses o) t&ans)e& b# Not be
a,,o.e- as -e-uction
Ans b
"7% T'e cost in),ation in-ex numbe& o)
t'e P%C&%!!"?!6 is /
a# 7"! b# 3$6 c# 33$ -# 3"
Ans -
"3% Conve&sion o) ca*ita, asset into
stoc9 in t&a-e .i,, &esu,t into ca*ita,
(ain o) t'e *&evious +ea&/
a# In .'ic' suc' conve&sion too9
*,ace
b# In .'ic' suc' conve&te- asset is
so,- o& ot'e&.ise t&ans)e&&e- c# None
o) t'ese t.o
Ans b
"@% H'e&e a *a&tne& t&ans)e&s an+
ca*ita, asset into t'e business o)
)i&m 2t'e sa,e consi-e&ation o)
suc' asset to t'e *a&tne& s'a,, be /
a# Ma&9et va,ue o) suc' asset on t'e
-ate o) suc' t&ans)e&
b# P&ice at .'ic' it .as &eco&-e- in
t'e boo9s o) t'e )i&m
c# Cost o) suc' asset to t'e *a&tne&
Ans b
"1% H'e&e t'e enti&e b,oc9 o) t'e
-e*&eciab,e asset is t&ans)e&&e- a)te&
4@ mont's2 t'e&e .i,, be/
a# S'o&t?te&m ca*ita, (ain b# Lon(?
te&m ca*ita, (ain
c# S'o&t?te&m ca*ita, (ain o& ,oss -#
Lon(?te&m ca*ita, (ain o& ,oss
Ans c
""% In t'e case o) com*u,so&+
ac>uisition2 t'e in-exation o) cost o)
ac>uisition o& im*&ovement s'a,,
be -one ti,, t'e /
a# P&evious +ea& o) com*u,so&+
ac>uisition b# In .'ic' t'e )u,,
com*ensation &eceive-
c# In .'ic' *a&t o& )u,, consi-e&ation
is &eceive-
Ans a
"6% I) (oo- .i,, o) a *&o)ession .'ic'
is se,) (ene&ate- is t&ans)e&&e-2 t'e&e
.i,,/
a# Ae ca*ita, (ain b# Not be an+
ca*ita, (ain c# Ae a s'o&t?te&m ca*ita,
(ain
Ans b
6!% Exem*tion un-e& section 37 is
avai,ab,e to /
a# A,, assesses b# In-ivi-ua,s on,+ c#
In-ivi-ua, I HUF%
Ans c
6$% T'e exem*tion un-e& section 37
2s'a,, be avai,ab,e/
a# To t'e extent o) ca*ita, (ain
investe- in t'e HP
b# P&o*o&tionate to t'e net
consi-e&ation *&ice investe-
c# To t'e extent o) amount actua,,+
investe-
Ans a
6% T'e exem*tion uGs 37A2 is
a,,o.e- to /
a# An+ assessee b# In-ivi-ua, on,+ c#
In-ivi-ua, o& HUF
Ans b
64% Fo& c,aimin( exem*tion un-e&
section 37A t'e assessee s'ou,-
ac>ui&e/
a# U&ban a(&icu,tu&a, ,an- b# 0u&a,
a(&icu,tu&a, ,an- c# An+ a(&icu,tu&a,
,an-
Ans c
67% Ne. assets ac>ui&e- )o& c,aimin(
exem*tion uGs 372 37A o& 37E2i)
t&ans)e&&e- .it'in 4 +ea&s2
.i,, &esu,t in/
a# S'o&t?te&m ca*ita, (ain b# ,on(?
te&m ca*ita, (ain
c# ST o& LTC: -e*en-in( u*on
o&i(ina, t&ans)e&
Ans a
63% Loss )&om a s*ecu,ation business
o) a *a&ticu,a& A% C&% can be set o)) in
t'e same A% C&% )&om/
a# P&o)it an- (ains )&om an+ business
b# P&o)it an- (ains )&om an+ business
ot'e& t'an s*ecu,ation business
c# Income o) s*ecu,ation business
Ans c
6@% Loss un-e& t'e 'ea- ca*ita, (ain
in a *a&ticu,a& assessment +ea& can/
a# Ae set o)) )&om ot'e& 'ea- o)
income in t'e same assessment +ea&%
b# Ae ca&&ie- )o&.a&- c# Neit'e& be
set o)) no& ca&&ie- )o&.a&-
Ans b
61% T'e ,oss is a,,o.e- to be ca&&ie-
)o&.a&- on,+ .'en as assessee 'as
)u&nis'e-/
a# 0etu&n o) ,oss b# 0etu&n o) ,oss
be)o&e t'e -ue -ate mentione- uGs
$46($#
c# O& not )u&nis'e- t'e &etu&n o) ,oss
Ans b
6"% Loss un-e& t'e 'ea- income )&om
'ouse *&o*e&t+ can be ca&&ie-
)o&.a&-/
a# On,+ i) t'e &etu&n is )u&nis'e-
be)o&e t'e -ue -ate mentione- uGs
$46($#
b# Even i) t'e &etu&n is not )u&nis'e-
c# Even i) t'e &etu&n is )u&nis'e- a)te&
t'e -ue -ate
Ans c
66% Ee-uction uGs "!C in &es*ect o)
LIP2 Cont&ibution to *&ovi-ent )un-2
etc% is a,,o.e- to /
a# An+ assessee b# An in-ivi-ua,
c# An in-ivi-ua, o) HUF -# An
in-ivi-ua, o& HUF .'o is &esi-ent in
In-ia
Ans c
$!!% Ee-uction un-e& section "!C is
a,,o.e- )&om/
a# :&oss tota, income b# Tota, income
c# Tax on tota, income
Ans a
$!$% An assessee 'as *ai- ,i)e
insu&ance *&emium o) 0s%32!!!
-u&in( t'e *&evious +ea& )o& a *o,ic+
o) 0s%$2!!2!!!%He s'a,,/
a# Not be a,,o.e- -e-uction uGs "!C
b# Ae a,,o.e- Ee-uction uGs "!C to
t'e extent o) !5 o) t'e ca*ita, sum
assu&e- i%e%0s%!2!!!
c# Ae a,,o.e- Ee-uction )o& t'e enti&e
*&emium as *e& t'e *&ovisions o)
section "!C
Ans b
$!% Fo& c,aimin( Ee-uction uGs "!C2
t'e *a+ment o& -e*osit s'ou,- be
ma-e/
a# Out o) an+ income b# Out o) an+
income c'a&(eab,e to income tax
c# Eu&in( t'e cu&&ent +ea& out o) an+
sou&ce
Ans b
$!4% Ee-uction un-e& section "!C
s'a,, be a,,o.e- )o& /
a# An+ e-ucation )ee
b# Tution )ee exc,usive o) an+
*a+ment to.a&-s an+ -eve,o*ment
)ee o& -onation o& *a+ment o)
simi,a& natu&e c# Tution )ee an-
annua, c'a&(es
Ans b
$!7% Ee-uction un-e& section "!CCC
is a,,o.e- to t'e extent o) /
a# 0s% 2!!2!!! b# 0s% $2!!2!!! c# 0s%
72!!2!!!
Ans b
$!3% Ee-uction un-e& section "!E in
&es*ect o) me-ica, insu&ance *&emium
is a,,o.e- to/
a# An+ assessee b# An in-ivi-ua, o&
HUF
c# In-ivi-ua, o& HUF .'o is &esi-ent
in In-ia -# In-ivi-ua, on,+
Ans b
$!@% Ee-uction uGs "!E is a,,o.e- i)
t'e *&emium is *ai- to /
a# Li)e insu&ance Co&*o&ation
b# :ene&a, insu&ance Co&*o&ation o&
an+ ot'e& insu&e& a**&ove- b+ I0EA
c# Li)e insu&ance o& :ene&a, insu&ance
co&*o&ation
Ans b
$!1% T'e *a+ment )o& Insu&ance
*&emium un-e& section "!E s'ou,- be
*ai-/
a# In cas' b# A+ an+ mo-e ot'e& t'an
cas' c# Cas'Gb+ c'e>ue
Ans b
$!"% T'e >uantum o) -e-uction
a,,o.e- un-e& section "!E s'a,, be
,imite- to/
a# 0s%!2!!! b# 0s%$!2!!! c# 0s%
$32!!!
Ans c
$!6% Ee-uction UGs "!: on account
o) -onation is a,,o.e- to/
a# A business assessee on,+ b# An+
assessee c# In-ivi-ua, o& HUF on,+
Ans b
$$!% T'e maximum -e-uction uGs
"!:: s'a,, be ,imite- to/
a# 0s% $2!!! *%m% b# 0s% 2!!! *%m% c#
0s% 42!!! *%m%
Ans b
$$$% Ee-uction uGs "!::A in &es*ect
o) ce&tain -onation )o& scienti)ic
&esea&c' o& &u&a, -eve,o*ment
is a,,o.e- to/
a# an+ assessee b# non co&*o&ate
business assessee
c# an assessee .'ose income -oes not
inc,u-e P:AP income%
Ans c
$$% Ee-uction un-e& section "!EE
s'a,, be a,,o.e-/
a# To t'e extent o) actua,
ex*en-itu&eG-e*osit o& 0s%7!2!!!
.'ic'eve& is ,ess
b# Fo& a sum o) 0s%3!2!!! i&&es*ective
o) actua, ex*en-itu&e o& -e*osit
c# Fo& a sum o) 0s%7!2!!! i&&es*ective
o) an+ ex*en-itu&e incu&&e- o& actua,
-e*osite-
Ans b
$$4% T'e -e-uction uGs "!E is a,,o.e-
)o& &e*a+ment o) inte&est to t'e extent
o) /
a# 0s%32!!! b# 0s%7!2!!! c# An+
amount &e*ai-
Ans c
$$7% T'e >uantum o) -e-uction
a,,o.e- uGs "!U is /
a# 0s% 7!2!!! b# 0s% 3!2!!! c# 0s%
@!2!!!
Ans b
$$3% As *e& Sec%$46($#2 a com*an+
s'a,, 'ave to )i,e &etu&n o) income/
a# H'en its tota, income excee-s
0s%3!2!!!
b# H'en its tota, income excee-s t'e
maximum amount .'ic' is not
c'a&(eab,e to income tax
c# In a,, cases i&&es*ective o) an+
income o& ,oss ea&ne- b+ it%
Ans c
$$@% T'e ,ast -ate o) )i,in( t'e &etu&n
o) income uGs $46($# )o& A% C&% !!6?
$! in case o) a com*an+
assessee is
a# 4!t' Novembe& o) t'e assessment
+ea& b# 4!t' Se*tembe& o) t'e
assessment +ea&
c# 4$st =u,+ o) t'e assessment +ea& -#
4$st Octobe& o) t'e assessment +ea&
Ans b
$$1% T'e ,ast -ate o) )i,in( t'e &etu&n
o) income uGs $46($# )o& assessment
+ea& !!6?$! in case o) a
non co&*o&ate business assessee
.'ose accounts a&e not ,iab,e to be
au-ite- s'a,, be/
a# 4$st =u,+ o) t'e assessment +ea& b#
4!t' =une o) assessment +ea&
c# 4$st Octobe& o) t'e assessment +ea&
-# 4!t' Se*tembe& o) t'e assessment
+ea&
Ans a
$$"% Fo& t'e P%C% !!"?!6 t'e
business income o) t'e assessee
be)o&e *&ovi-in( C%C&% -e*&eciation
o)
0s% 423!2!!! is 0s% $23!2!!!% His -ue
-ate o) &etu&n .as 4!?!6?!!6 but 'e
submitte- t'e
&etu&n on $@?$?!!62 t'e assessee in
t'is case/
a# Ae a,,o.e- to ca&&+ )o&.a&-
unabso&be- -e*&eciation o) 0s%
2!!2!!!
b# Not a,,o.e- to ca&&+ )o&.a&-
unabso&be- -e*&eciation o)
0s%2!!2!!!
Ans b
$$6% D )in-s some mista9e in t'e
&etu&n o) income submitte- b+ 'im on
!3?!@?!!" )o& assessment
+ea& !!6?$!2 'e .is'es to &evise-
suc' &etu&n% No assessment 'as been
-one in t'is case% D
can &evise suc' &etu&n ti,,/
a# 4$?!4?!!6 b# 4$?!4?!$! c# 4$?
!4?!$$
Ans b
FILL THE ALANDS
$% Fo& a se,)?occu*ie- 'ouse *&o*e&t+
occu*ie- on =u,+ $2 !!1 )o& .'ic'
'ousin( ,oan .as
avai,e-2 i) t'e inte&est u* to Ma&c'
4$2!!1 is 0s%6!2!!! an- t'e&ea)te&
t'e inte&est *a+ab,e is
0s%42!!! *e& mont'2 t'e -e-uction
avai,ab,e un-e& section 7 in &es*ect
o) inte&est )o& t'e +ea&
en-e- Ma&c' 4$2 !!" is 0s%
JJJJJJJJJJJ%
Ans 0s%372!!!
% Fo& a *e&son su))e&in( )&om seve&e
*'+sica, -isabi,it+2 -e-uction
avai,ab,e un-e& section "!U is
0sJJJJJJJJJ%%
Ans 0s%132!!!
4% Accumu,ate- ,osses o)
ama,(amatin( com*an+ s'a,, be
a,,o.e- to be set o)) o& ca&&ie-
)o&.a&- b+
ama,(amate- com*an+2 i) t'e
ama,(amate- com*an+ 'o,-s
continuous,+ )o& a minimum *e&io-
o) JJJJJJJJ%% +ea&s )&om
-ate o) ama,(amation at ,east t'&ee?
)ou&t' o) JJJJJ%o) t'e
ama,(amatin( com*an+%
Ans 32 boo9 va,ue o) )ixe- assets
7% An aut'o& o) a .o&9 o) ,ite&ac+2
a&tistic o& scienti)ic natu&e is entit,e-
to -e-uction to ce&tain
amount )&om 'is income% State t'e
amount an- section numbe& un-e&
.'ic' 'e is entit,e- to
-e-uction JJJJJJJJJJ%
Ans 4 ,a9's o& $!! *e&cent o) suc'
income
.'ic' eve& is ,o.e&2 sec%"! QQA
3% Inte&est on ca*ita, bo&&o.e- )o&
ac>uisition o& const&uction o) *&o*e&t+
is -e-uctib,e subject to
,imit o) 0s% JJJJJJJ *e&
+ea&2 i) ca*ita, is bo&&o.e- on o& a)te&
JJJJJJ% T'is is
a,,o.ab,e i) ac>uisition o&
const&uction is com*,ete- .it'in
JJJJ% Cea&s )&om JJJJJJ
Ans $23!2!!!2 $?7?$6662 4 +ea&s2 t'e
en- o) t'e
)inancia, +ea& in .'ic' t'e ca*ita, .as
bo&&o.e-%
@% Fo& t'e assessment +ea& !!6?$!2
tax on -ist&ibute- *&o)its ( -ivi-e-
-ist&ibution tax# is *a+ab,e
atJJJJJJJ5 *,us su&c'a&(e
o) JJJJJJJ i) -omestic
com*an+ -ist&ibutes -ivi-en- on
o& a)te&JJJJJJJ%%
Ans $32 $!5 I (e-ucation cess# 452
A*&i, $st !!3%
1% T'e -ue -ate )o& )i,in( o) &etu&n
un-e& section $46($# b+ a com*an+
'avin( a tu&nove& o) ,ess
t'an 0s%7! ,a9's is JJJJ%%
Ans 4!t' Se*% o) t'e &e,evant
assessment +ea&
"% Ee-uction un-e& section "!::C in
&es*ect o) cont&ibution to a**&ove-
*o,itica, *a&ties (iven b+
a ,oca, aut'o&it+ *a&t,+ )un-e- b+ t'e
:ove&nment is JJ%%
Ans Not a,,o.e-
6% H'e&e a *e&son t&ans)e&s ca*ita,
asset to a )i&m in .'ic' 'e becomes
*a&tne& t'e )u,, va,ue o)
consi-e&ation in t'e context o) ca*ita,
(ain com*utation2 .i,, be JJJJ%
Ans T'e va,ue o) assets &eco&-e- in
t'e boo9s
o) t'e )i&m
$!% Fo& avai,in( exem*tion un-e&
section $!A2 &etu&n o) income s'ou,-
be )i,e- b+ a co&*o&ate
assessee on o& be)o&e JJJJ%%
Ans 4$?$!?!1
$$% In case o) an e,i(ib,e assessee2
im*o&te- secon- 'an- mac'ine&+
neve& *ut to use b+ an+ *e&son
in In-ia be)o&e2 a--itiona, o&
acce,e&ate- -e*&eciation is a,,o.ab,e
at t'e &ate o) JJJ% on t'e
actua, cost o) mac'ine&+%
Ans Ni,
$% F&in(e bene)it tax JJJJ% an
a,,o.ab,e item o) business
ex*en-itu&e
Ans is not
$4% H'e&e an in-ivi-ua, 'as &e*ai- in
t'e secon- +ea&2 0s%!2!!! to.a&-s
*&inci*a, an- 0s%@!2!!!
to.a&-s e,i(ib,e e-ucation ,oan )&om
an a**&ove- ban92 t'e -e-uction
avai,ab,e un-e& Section
"!E is 0sJJJJJ
Ans @!2!!!
$7% As *e& section (71# JJJJ%2
o& JJJ%% o) a 8e&o cou*on bon-
.i,, be t&eate- as Kt&ans)e&L )o& t'e
*u&*ose o) ca*ita, (ains tax
Ans Matu&it+2 &e-em*tion
$3% An Assessee2 a)te& sa,e o) 'ouse
*&o*e&t+2 &eceivin( a&&ea&s o) &ent2
JJJ (isGisnot# c'a&(eab,e to taxM
t'e same com*ute- in t'e sti*u,ate-
manne&2 s'a,, be c'a&(eab,e to tax as
JJJ (income )&om ot'e& sou&ces G
income )&om 'ouse *&o*e&t+ G
>uestion -oes not a&ise since t'e&e is
no c'a&(eabi,it+ to tax#
Ans is2 income )&om 'ouse *&o*e&t+
$@% A moto& ca& is t'e on,+ Asset in a
b,oc9% Cost 0s%2!!2!!!% 0ate o)
-e*&eciation is $35% !5 is
-isa,,o.e- )o& estimate- *e&sona, use%
HEN o) t'e b,oc9 is 0sJJJJ
Ans $21@2!!!
$1% M&% A (i)ts cas' 0s%$2!!2!!! to
'is b&ot'e&;s .i)e M&s%A2 M&%A (i)ts
cas' 0s%$2!!2!!! to M&s A%
)&om cas' (i)te- to 'e&2 M&s%A invests
in a )ixe- -e*osit2 income t'e&e )&om
is 0s%$!2!!!% A
)o&esai- 0s%$!2!!! .i,, be inc,u-e- in
t'e tota, income o) JJJ%%
Ans M&%A
$"% T'e time ,imit )o& )i,in( &evise-
&etu&n .'e&e assessment 'as not been
com*,ete- is JJJJJ%
Ans One +ea& )&om t'e en- o) t'e
&e,evant assessment +ea& o& be)o&e t'e
best ju-(ement assessment o&-e&
*asse- .'ic' eve& is ea&,ie&%
$6% T'e >uantum o) -e-uction
a,,o.e- uGs "!E )o& *a&ents s'a,, be
,imite- to JJJJJJ
Ans 0s%4!2!!!
T0UE O0 FALSE (HITH
0EASONS#
$% H'e&e an u&ban a(&icu,tu&a, ,an-
o.ne- b+ an in-ivi-ua,2 continuous,+
use- b+ 'im )o&
a(&icu,tu&a, *u&*oses )o& a *e&io- o)
t.o +ea&s *&io& to t'e -ate o) t&ans)e&2
is com*u,so&i,+2 ac>ui&e-
un-e& ,a. an- t'e com*ensation is
)ixe- b+ t'e state :ove&nment2
&esu,tant ca*ita, (ain is exem*t%
Ans F
% H'e&e an in-ivi-ua, &e*a+s a sum
o) 0s%4!2!!! to.a&-s *&inci*a, an-
0s%$72!!! as inte&est in
&es*ect o) ,oan ta9en )&om a ban9 )o&
*u&suin( e,i(ib,e 'i('e& stu-ies 2t'e
-e-uction a,,o.ab,e
un-e& section "!E is 0s%7!2!!! an-
not 0s%4!2!!! ( *&inci*a, com*onent
on,+#
Ans F
4% Ausiness ,oss can be set o)) a(ainst
sa,a&+ incomeM
Ans F
7% A 'as &eceive- (i)t to 0s%$23!2!!!
on Eecembe& $2 !!3 )&om 'is c,ose
)&ien- .'o is assesse- to
income?tax % T'e same is taxab,e at
t'e 'an-s o) A%
Ans T
3% Lon( te&m ca*ita, (ains a&isin(
)&om units o) -ebt?o&iente- e>uit+
)un-s )o& .'ic' secu&ities
t&ansactions tax 'as been *ai- in a
&eco(ni8e- stoc9 exc'an(e is exem*t%
Ans T
@% Un-e& Section 43EEA2
amo&ti8ation o) ex*en-itu&e incu&&e-
un-e& e,i(ib,e No,unta&+ 0eti&ement
Sc'eme at t'e time o) &eti&ement
a,one2 can be -one
Ans F
1% Na,ue o) )&in(e bene)it c'a&(eab,e
to tax un-e& C'a*te& OII?H in t'e
'an-s o) t'e em*,o+e&2 is not
to be t&eate- as a *e&>uisite un-e&
Section $1(#2 in t'e 'an-s o) t'e
em*,o+ee%
Ans T
"% Pe&o cou*on bon-s o) E,i(ib,e
Co&*o&ation2 'e,- )o& mo&e t'an $
mont's2 .i,, be ,on(?te&m
ca*ita, assets%
Ans T
6% In t'e case o) a -ea,e& in s'a&es2
income b+ .a+ o) -ivi-en- is taxab,e
un-e& t'e 'ea- K*&o)its
an- (ains o) business o& *&o)essionL%
Ans F
$!% M&% C .'o is a *'+sica,,+
'an-ica**e- mino& (su))e&in( )&om a
-isabi,it+ o) t'e natu&e s*eci)ie-
in Section "!U# ea&ns ban9 inte&est o)
0s%3!2!!! an- 0s%@!2!!! )&om
ma9in( ba(s manua,,+ b+
'imse,)% T'e tota, income o) M&%C
s'a,, be com*ute- in 'is 'an-s
se*a&ate,+%
Ans T
$$% On,+ in-ivi-ua,s an- HUFs can be
&esi-ent2 but not o&-ina&i,+ &esi-ent in
In-iaM )i&ms can be
eit'e& a &esi-ent o& non?&esi-ent%
Ans T
$% In &es*ect o) vo,unta&+
cont&ibutions in excess o) 0s%!2!!!
&eceive- b+ a *o,itica, *a&t+2
exem*tion un-e& section $4A is
avai,ab,e .'e&e *&o*e& -etai,s about
t'e -onations a&e
maintaine-M t'e&e is no nee- to
maintain boo9s o) account%
Ans F
$4% Ee*&eciation is a,,o.e- on,+
.'en it is c,aime-%
Ans F
$7% Fo& (&ant o) -e-uction un-e&
section "!?IA2 )i,in( o) au-it &e*o&t in
*&esc&ibe- )o&m is must )o& a
co&*o&ate assesseeM )i,in( o) &etu&n
.it'in t'e -ue -ate ,ai- -o.n in
section $46($# is not &e>ui&e-%
Ans F
$3% F&om $%@%!!@ on.a&-s2 t'e
Assessin( O))ice& 'as t'e *o.e&2 inte&
a,ia2 to a,,ot PAN to an+
*e&son b+ .'om no tax is *a+ab,e%
Ans T
$@% H'e&e t'e Da&ta o) a HUF is
absent )&om In-ia2 t'e &etu&n o)
income can be si(ne- b+ an+ ma,e
membe& o) t'e )ami,+%
Ans F
$1% It is a con-ition *&ece-ent to .&ite
o)) in t'e boo9s o) account2 t'e
amount -ue )&om -ebto& to
c,aim -e-uction )o& ba- -ebt%
Ans T
$"% Tax on )&in(e bene)its *&ovi-e-
)o& em*,o+ment is *a+ab,e b+ a,,
em*,o+e&s%
Ans F
$6% Fai,u&e to -e-uct tax at sou&ce in
acco&-ance .it' t'e *&ovisions o)
c'a*te& ONII?A2 inte& a,ia2
)&om t'e amounts *a+ab,e to a
&esi-ent as &ent o& &o+a,t+2 .i,, &esu,t
in -isa,,o.ance .'i,e
com*utin( t'e business income%
Ans T
!% Com*ensation on account o)
-isaste& &eceive- )&om ,oca, aut'o&it+
b+ an in-ivi-ua, o& 'isG'e&
,e(a, 'ei& is taxab,e%
Ans T
$% 0u&a, b&anc'es o) t'e coo*e&ative
ban9s a&e not a,,o.e- to c,aim
*&ovision )o& ba- an- -ou-t)u, -ebts%
Ans F
% Income to a non? &esi-ent b+ .a+
o) inte&est2 &o+a,t+ an- )ee )o&
tec'nica, se&vices -eeme- to
acc&ue o& a&ise in In-ia is taxab,e in
In-ia i&&es*ective o) te&&ito&ia, nexus%
Ans T
4% Ca*ita, (ain o) 0s%13 ,a9' a&isin(
)&om t&ans)e& o) ,on( te&m ca*ita,
assets .i,, be exem*t )&om
tax i) suc' ca*ita, (ain is investe- in
t'e bon-s &e-eemab,e a)te& t'&ee
+ea&s2 issue- b+
NHAI uGs 37EC o) t'e Act%
Ans T
7% O2 Lt-% )o,,o.s me&canti,e s+stem
o) accountin(% A)te& ne(otiations .it'
t'e ban92 inte&est o) 0s%7
,a9's (inc,u-in( inte&est o)
0s%$%,a9's *e&tainin( to +ea& en-e-
4$%!4%!!1# 'as been conve&te-
into ,oan% Can t'e inte&est o)
0s%$%,a9's so ca*ita,i8e- be c,aime-
as business ex*en-itu&e%
Ans F
3% Can a P&ima&+ coo*e&ative
A(&icu,tu&a, an- 0u&a, Eeve,o*ment
Aan9 c,aim -e-uction un-e&
Sec%"!P in &es*ect o) income -e&ive-
)&om t'e business o) ban9in(%
Ans T
@% T'e tota, income o) a Unive&sit+
.it'out (ivin( e))ect to exem*tion
un-e& Sec%$!(4C# is
0s%7@,a9's% Its tota, income 'o.eve&
is ni,% S'ou,- t'e unive&sit+ )i,e its
&etu&n o) incomeQ
Ans T
1% Ms%Nasu-'a conten-s t'at sa,e o)
.o&9 o) a&t 'e,- b+ 'e& is not e,i(ib,e
to ca*ita, (ains tax%
Ans F
"% Hi,, a c'a&itab,e t&ust )o&)eit t'e
exem*tion (&ante- to it2 i) it 'o,-s
s'a&es in a Pub,ic Secto&
Com*an+Q
Ans F
6% Ee-uction uGs "!CCE is avai,ab,e
on,+ to in-ivi-ua,s em*,o+e- b+ C%:%
Ans F
4!% M&s% Hema,at'a 'as ma-e
*a+ments o) 0s%3,a9's to a cont&acto&
( )o& business *u&*oses# -u&in( t'e
,ast Qua&te&s o) t'e +ea& en-e-
4$%!4%!!"% He& tu&nove& )o& t'e +ea&
en-e- 4$%!4%!!1 .as
0s%73,a9's% Is t'e&e an+ ob,i(ation to
-e-uct tax at sou&ceQ
Ans T
4$% Can an in-ivi-ua, .'o is not in
In-ia2 si(n t'e &etu&n o) income )&om
outsi-e In-ia%
Ans T